Tuesday, February 16, 2016

Victory Brewing And Southern Tier Brewing Unite Under New Holding Company

Downingtown, PA (February 16, 2016) – Having just marked 20 years in the craft brewing industry, Victory Brewing Company (Victory) proudly announces a landmark alliance with Southern Tier Brewing Company
(Southern Tier) under parent company Artisanal Brewing Ventures (ABV).
As the first major transaction of 2016 within the rapidly evolving craft
beer industry, this union presents a new model for craft beer
partnerships by preserving brewery independence while pooling deep
collective resources.

Bill & Ron of Victory Brewing - Courtesy Victory Brewing

This new strategic framework between ABV, Victory and Southern Tier
provides capital, security and vision for the future. ABV, formed to
unify independent craft brewers and distillers, embraces the
collaborative craft spirit while administering crucial growth resources.
As a key partner in this formation, Arlington Capital Advisors acted as
exclusive financial consultant to Victory. The transaction is expected
to close within the next 60 days.

Under the umbrella of ABV, Victory and Southern Tier will independently
operate their breweries, commanding a joint capacity of over 800,000
barrels of potential annual production. This alliance creates one of the
largest brewers in the Northeast and ranks within the top 15 craft
brewing companies in the United States with combined 2015 shipments of
over 250,000 barrels according to Brewers Association criteria. With a
world-class roster of complementary beer brands and an even stronger
standing in the marketplace, ABV will shepherd Victory and Southern Tier
in collaborative sales and marketing efforts to strengthen, support and
expand its distributor and retail partnerships. Victory and Southern
Tier brands will become increasingly available to loyal and new
consumers across their combined markets as a direct result of this
union.

“The craft beer community is at its most critical moment since its
inception as larger brewing corporations have bought into our grassroots
movement, irrevocably changing the marketplace. Like-minded brewers
such as Victory and Southern Tier can preserve our character, culture
and products by banding together,” said Bill Covaleski, Founder and
Brewmaster of Victory Brewing Company. “Allied we can continue to
innovate and best serve the audience who fueled our growth through their
loyal thirst.”

"Having gotten to know Phin, John and the whole management team, I am
more excited than ever about the innovations that lie in our collective
futures. One walk through their brewery and I knew that Southern Tier
had the same belief in quality and excellence that has driven our
culture for 20 years,” explains Ron Barchet, COO of Victory Brewing
Company.

The Victory and Southern Tier leadership teams and employees will remain
intact. Bill Covaleski and Ron Barchet of Victory, who will become
significant shareholders in ABV, will join the Artisanal Brewing
Ventures’ Board of Directors. John Coleman, CEO and Bill Wild, CFO will
lead ABV's management team.

John Coleman of ABV & Phin DeMink of Southern Tier

“This is exactly the kind of alliance we imagined when we created
Artisanal Brewing Ventures in 2014,” said Phin DeMink, founder of
Southern Tier Brewing Company and also a major shareholder in ABV.
“This is a concept that was specifically designed by and for craft
brewers, so we can focus on the things we’re best at while creating
meaningful scale advantages. I’m proud to see this model validated and
am grateful that my friends Ron and Bill have become our partners.”

“This is the ultimate craft beer collaboration. It is an honor to be
associated with these pioneering entrepreneurs who have been
contributing to the industry since craft’s early days,” said John
Coleman, CEO of ABV. “I look forward to guiding these two truly great
organizations forward as they collaborate, innovate and share best
practices.”

“I believe this is a watershed transaction for the craft brewing world.
This union of two great regional players preserves their independence
and distinct cultures while sharing administrative and management
functions to support deeper investment in sales, marketing and
innovation,” commented Vann Russell, Managing Director and Founder of
Arlington Capital.

About Victory Brewing Company
Victory Brewing Company is a craft brewery headquartered in Downingtown,
PA. Founded by childhood friends, Bill Covaleski and Ron Barchet,
Victory officially opened its doors in February of 1996. Victory’s
second state of the art brewery opened in February of 2014 in
Parkesburg, PA to serve fans of fully flavored beers in 37 states with
innovative beers melding European ingredients and technology with
American creativity. In addition to the original Downingtown brewpub,
Victory’s second brewpub is in Kennett Square, while Parkesburg recently
launched self-guided tours and the third brewpub. To learn more about
Victory Brewing Company, please visit www.victorybeer.com.

About Southern Tier Brewing Company
In 2002 Phin and Sara DeMink founded Southern Tier Brewing Company in
Lakewood, New York with the vision of reviving the practice of small
batch brewing to a region rich in brewing tradition. Following several
expansions from 2009 through 2013 Southern Tier now ships over 100,000
barrels annually to 33 states to meet growing demand for Southern Tier’s
diverse portfolio of innovative beers that embody the spirit of
American craft brewing. In 2015 Southern Tier Distilling Company was
formed to create innovative small batch spirits using unique local
ingredients under a New York farm distilling license. To learn more
about Southern Tier Brewing Company, please visit www.stbcbeer.com.

About Artisanal Brewing Ventures
Artisanal Brewing Ventures is located in Charlotte, NC and was formed by
Phin and Sara DeMink and Ulysses Management LLC, a New York based
family office, with the vision of creating a home for like-minded,
best-in-class craft breweries in close partnership with their founders.
Ulysses Management was founded nearly 20 years ago by Joshua Nash as the
successor firm to the pioneering investment firm Odyssey Partners, LP.
Ulysses invests in profitable, well-established companies with
tangible, competitive advantages with the goal to build long-term value
that benefits all stakeholders while maintaining brand independence. To
learn more about Ulysses Management, please visit www.ulyssesmgmt.com.